Eutility's weekly news

AGL SA customers to be hit with 18pc price hike, State Government says

AGL SA customers to be hit with 18pc price hike, State Government says

By Tom Fedorowytsch and Matt Coleman on 9 June 2017

Power prices are set to rise by 18 per cent for AGL customers in South Australia, according to the State Government, with similar increases expected in New South Wales and the ACT.

SA Energy Minister Tom Koutsantonis has described the price rise, which applies from July 1 to customers on default standing contracts, as unsustainable.

AGL said the average price increase for residential electricity customers in SA would be $6.70 per week, or $350 a year.

Welfare organisation, the South Australian Council of Social Service (SACOSS), said it was enormously disappointing news for all South Australians, but especially those on the lowest incomes including pensioners.

SACOSS official Ross Womersley said it was a "huge kick in the guts for lots of South Australians".

"I think there will be a lot of people that are going to be shocked that the price increase is to be so substantial," he said.

Gas price and availability blamed

AGL said wholesale market prices had risen "significantly" for reasons including high gas prices and limited gas availability on the east coast, the closure of ageing coal-fired generators, and "an uncertain policy environment".